“The venture capital model is well established, but I’d argue their success rate is very low relative to the cash they deploy. We think post-angels up to where VCs start to play is the most under-serviced area of the UK economy. It’s where a lot of returns can be achieved for investors.”

Alongside a conventional limited partnership, Variable Pitch will also broker direct investments in businesses from its investors.

Another unusual feature of the firm, which Mr Abell said is “sector agnostic”, is its commitment

to bolting on a semi-permanent marketing operation to the companies it backs, through a partnership Growth Innovators Group, a sales and distribution consultancy.

“Venture capitalists (VCs) can provide resources at the right time – a good one will make things happen. But typically they don’t play very early – you could argue about how much venturing the venture capital industry does at the moment. We see ourselves picking these opportunities up and being commercial engineers rather than financial ones. We’re able to go where VCs fear to tread.”

It plans to achieve exits through trade sales or follow on rounds from venture capital firms.

Variable Pitch will only take minority stakes, Mr Abell said: “We’ve mandated ourselves to never seek ownership of the companies we work with.”

Ask the expert »

Is something holding your company back? Ask our business agony uncle and retail expert John Timpson to help you with anything from cash flow crises to funding headaches, staffing problems and sales downturns by emailing your question to askjohn@telegraph.co.uk